1Q20/21 1Q20/21 RESULTS RESULTS PRESE PRESENTATION NTATION GDAŃSK 25 TH JUNE 2020
Disclaimer This is presentatio ion (t (the “Presentation”) was prepared by by LPP SA SA (t (the “Company”) wit ith a due care. Stil ill, it it may contain in certain inconsis istencie ies or or omis issions. The Presentation does not contain in a complete or or thorough financial analysis is of of the Company and does not not present it its standing or or prospect cts in in a comprehensive or or in in-depth manner. Therefore, anyone who in intends to to make an an investment decis ision wit ith respect ct to to the Company should rely on on the information dis isclosed in in the offic icial reports of of the Company, published in in accordance wit ith the laws applic icable to to the Company. This is Presentatio ion was prepared for informatio ion purp urposes on only and nd doe oes not not co constit itute an an off offer to to buy uy or or to to sel sell any fin financial instruments ts. The Presentatio ion may contain in 'forward-lookin ing statements'. However, such statements cannot be be treated as as assurances or or projections of of any exp xpected future result lts of of the Company. Any statements concernin ing expectations of of future financial results cannot be be understood as as guarantees that any such results wil ill actually be be achieved in in future. The expectatio ions of of the Management Board are based on on their ir current knowledge and depend on on many factors due to to whic ich the actual results achieved by by the Company may dif iffer materially from the results presented in in this is document. Many of of those factors are bey eyond th the awareness and co contr trol of of th the Co Company or or th the Company’s abil ility to to for foresee th them. Neit ither the Company, nor it its dir irectors, offic icers, advis isors, nor representativ ives of of any such persons are lia iable on on account of of any reason resulting from any use of of this is Presentatio ion. Addit itionally, no no information contained in in this is Presentation constit itutes any representation or or warranty of of the Company, it its offic icers or or dir irectors, advis isors or or representatives of of any of of the above persons. The Presentatio ion and the forward-looking statements speak only as as at at the date of of this is Presentation. These may not not be be indic icativ ive of of results or or developments in in future periods. The Company does not undertake any obligatio ion to to revie iew, to to confir irm or or to to release public icly any revis isions to to any forward-looking st statements to to reflect events that occur occur or or circumstances th ci that aris ise after th the date te of of th this is Presentation. G L O B A L A S P I R A T I O N S 2
1. 1Q20/21 financial results 2. Key corporate events 3. 2020/21 outlook G L O B A L A S P I R A T I O N S 3
Direction: omnichannel OFF -LINE 1,731 stores 40 COUNTRIES +13.3% m2 -57.3% LFL 31 countries -35.3 % ON -LINE GROUP REVENUES 25 countries +120.5% sales G L O B A L A S P I R A T I O N S 4
Results impacted by COVID-19 19 Shopping malls closed Opening of shopping in majority of countries, in which malls on selected LPP has traditional markets stores beginning beginning mid-March 2020 end of June 2020 of February 2020 of May 2020 Growing uncertainty, concerns regarding Acceleration Negotiations with supply chain, of e-commerce shopping malls related especially towards development to rental agreements China, and falling sales dynamics G L O B A L A S P I R A T I O N S 5
LPP present in 40 40 countries 5 27 17 345 23 1 852 As at No. of Open as at YoY 19 30.04.2020 stores 23.06.2020 89 103 56 10 LPP GROUP 1,731 +13 77% 32 6 60 29 Poland 852 -66 81% 5 19 Europe 413 +38 98% 25 CIS 458 +40 50% ME 8 +1 88% 3 1 on-line + off-line on-line off-line 2 1 1 G L O B A L N E A S P I R A C J E G L O B A L A S P I R A T I O N S 6 6
A shifted fiscal year 2020/21 will include 1Q20/21 is the first 1Q20/21 encompasses 12 months and 3-month-long quarter period from encompass period 1 st February 2020 till from 1 st February of the shifted fiscal 30 th April 2020. year. 2020 until 31 st January 2021. The YoY dynamics are presented in relation to data for a comparable period that has not been published so far in this form. They therefore include data for 3-month-long shifted quarters, also for 4Q19/20. G L O B A L A S P I R A T I O N S 7
E-commerce growth, , fall in LFLs LFL LF L DYN DYNAMICS ON ON-LI LINE SA SALE LES (local cur currencies) (PLN PLN m) 390.7 384.0 8.5% 0.9% 5.9% 0.7% 276.3 239.5 174.2 -57.3% 1Q19/20 2Q19/20 3Q19/20 4Q19/20 (3M) 1Q20/21 1Q19/20 2Q19/20 3Q19/20 4Q19/20 (3M) 1Q20/21 Ne Negative LF LFLs in in eac each month of 1Q 1Q20/21, the e high ighest falls in in Apr pril 202 2020. . Sim Similar dy dynamics for r eac each br brand. . • Double-digit neg egative LF LFLs Ls in in all ll co countries in in 1Q 1Q20/21 (slightest decl decline in in Russia, Ka Kazakhstan and Latv Latvia). ). • Tri Triple-digit on-li line sales gro growth (12 120.5 .5% Yo YoY) Y) in in 1Q 1Q20/21 due due to mig igration of cu customers to e-commerce after • shopping malls wer ere clo closed dow down for r a co coupl ple of wee eeks. . In 1Q 1Q20/21 e-commerce co constituted 38.2 38.2% re revenues from rom Po Polan land (10 10.4 .4% in in 1Q 1Q19/20) and 32. 32.6% grou group rev revenues • (9. 9.6% in in 1Q 1Q19/20). ). Po Polan land co constituted 53% % of e-commerce re revenues. G L O B A L A S P I R A T I O N S 8
Mobile – source of on-line growth Traff Tra ffic by by de devi vice ty type 2.4% 1.4% 174 m 80% Tablet 70.6% visits in our e-stores of traffic takes place via 79.7% Mobile in 1Q20/21 mobile devices Desktop +64% YoY 27.0% 18.9% 1Q19/20 1Q20/21 Reve Revenues by by de devi vice ty type 3.0% 1.4% 49.5% PLN 384m 60% 59.2% Tablet Mobile on-line revenues revenues generated by in 1Q20/21 mobile devices Desktop 47.5% 39.4% +120.5% YoY 1Q19/20 1Q20/21 G L O B A L A S P I R A T I O N S 9
More favourable dynamics than in base case scenario YoY REVENUE DYNAMICS As we expected, triple-digit total off-line on-line 364% on-line sales dynamics continue despite reopening 251% of shopping malls. 110% 72% 62% -23% 14% -68% -39% -32% Sales in traditional stores pick 10% up faster than we initially -41% -42% assumed, even though not all -77% -100% of our stores have been February March April May June (3W) reopened. Triple-digit on- line sales dynamics result from strong recognition of LPP’s brands . G L O B A L A S P I R A T I O N S 10
All brands impacted by COVID-19 19 REVENUES BY REV BY BR BRANDS IN IN 1Q 1Q20/ 0/21 1Q20/2 1Q /21 FL FLOORSPACE (by by bra brands) (PLN LN m) Reserved 554 - 39% YoY ths m2 1Q19/20 1Q20/21 YoY Cropp 135 - 45% YoY LPP GROUP 1,096.7 1,242.7 13.3% Reserved 616.6 657.1 6.6% - 46% YoY House 119 Cropp 134.9 149.2 10.6% -38% YoY Mohito 126 House 115.9 129.8 12.0% + 3% YoY Mohito 108.0 110.5 2.3% Sinsay 231 Sinsay 110.5 190.4 72.3% - 35% YoY Other 14 Outlets 10.8 5.8 -46.6% In n 1Q 1Q20/21 Res Reserved, Cr Cropp and nd Moh ohito gen generated mo more revenues fr from abroad th than fr from Pol oland. . • Hi High dou ouble-digit rev evenue fa falls in Res Reserved, , Cr Cropp, Ho House and Moh ohito to due ue to to th the adverse impact of of sho shoppin ing ma malls • bein eing clo closed dow own in n mo most t co countries with tr traditio ional stor stores. . The on The only brand th that t sho showed YoY oY gr growth in in revenues was Sin insay. It t res esulted fr from th the ea earlier co conduct cted flo floorspace • expansion and exp nd th the low lowest price pos osit itio ioning among brands in n th the e Gr Group. G L O B A L A S P I R A T I O N S 11
Foreign revenues exceed Polish ones REV REVENUES BY BY REG REGIONS 1Q 1Q20/2 /21 FL FLOORSPACE (PLN LN m) m) (by by re regio gions) Poland 536 ths m2 1Q19/20 1Q20/21 YoY -41% YoY LPP GROUP 1,096.7 1,242.7 13.3% Europe 347 - 28% YoY Poland 515.5 521.7 1.2% CIS 292 Europe 306.3 375.9 22.7% -31% YoY CIS 267.8 336.8 25.7% ME 4 -49% YoY ME 7.1 8.4 19.3% In n 1Q20/21 for foreign rev evenues exc exceeded dom omestic c on ones. . Pol oland co constit ituted 45.5 45.5% of of revenues. . • Fall in Fal n revenues in n Eur Europe was low lower th than in ot other reg egions due ue to to flo floorspace dev evelopment (especially in SEE region), • entry to en to a ne new co country (Finland) and nd dev evelopment t of of pan n Eur European e-store. CIS 1Q CI 1Q20/21 revenues wer ere affected by y clo closing dow own of of fra franchise stor stores in n Be Belarus (opening of of ow own stor stores sch scheduled • for 3Q for 3Q20/21). Fr Franchise sto stores in Middle Ea East t wer ere als lso aff ffected by y CO COVID-19 19. . G L O B A L A S P I R A T I O N S 12
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